*New UPS Rates to Take Effect in February

The United Parcel Service of America, Atlanta, announced yesterday an average 3.1 to 3.5 percent rate increase to take effect Feb. 7.

UPS has raised rates at the end of each calendar year for more than a decade.

Air express rates for UPS Next Day Air, 2nd Day Air and 3 Day Select Commercial services will increase 3.5 percent. Rates for UPS Ground Commercial increase 3.1 percent across all weights and zones, and the category maintains its existing $1 premium for ground service to residential addresses. A $1 residential delivery surcharge introduced in 1999 for certain destination ZIP codes has increased to $1.50 per package, though the number of ZIP codes affected has been reduced. Last year, 22,314 rural 5-digit ZIP codes were affected.

In addition , UPS international export rates from the U.S. will increase 2.9 percent, the first increase for these services in three years. There will be no increase for import rates, which were simplified with a single currency, globally zoned rate chart introduced last summer.

Contract rates for UPS' less-than-truckload shipments -- or large lots of packages that move from the same shipper to a single commercial destination -- will increase an average of 3.9 percent compared to increases ranging from 4.9 to 5.8 percent announced by LTL carriers and competitors earlier this year.

These rates clearly signal that UPS intends to continue to compete aggressively for the LTL market.

"We have been first to market in recent years with a variety of global supply chain solutions that add value across a broad array of services," said Joe Pyne, UPS senior vice president, marketing. "We will continue our leadership in offering innovations to support ease of use and customer connectivity with and through UPS."

Meanwhile, UPS said that in early 2000, the company will begin releasing new UPS OnLine WorldShip shipping and tracking software, which provides for free Internet access to the UPS Web site. The software stores shipping records, validates address information, calculates rates, prepares export documentation and prints labels for all UPS shipments.

The new rates will be available for easy download from the UPS Web site at www.ups.com in January.

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